Put taxes on back end, says Sandals Chair

(from left) Prime Minister Keith Mitchell,
CEO of Sandals Resorts International, Adam Stewart
and Sandals Chairman, Gordon ‘Butch’ Stewart.

HOTEL magnate Gordon ‘Butch’ Stewart has made a plea for governments in the region to re-think the way they tax land-based tourism.

Speaking at a function last Friday at the recently opened Sandals La Source resort, in the presence of Prime Minister Keith Mitchell, Minister of Tourism Alexandra Otway-Noel, as well as members of the former administration, Tillman Thomas and Nazim Burke, Stewart argued that the current tax structure for the hotel sector was stifling the region’s tourism industry.

“Going back to the old days, the Caribbean paid their bills. The economy got better and better, because we never contaminated export with taxes. Ships leaving with sugar or bananas, the governments knew that if you put a tax on it, you’ll sell less – or not sell it at all,” said Stewart.

“When the 60s and 70s came and we started putting taxes on tourism, by the 80s, it stalled on us. The cruise ships started coming on and without taxes they can expand. The Caribbean has been held back by taxing an export that you cannot contaminate. Otherwise, there is no difference than having the best racehorse in the world, but putting too much weight on the horse – it can’t win any race.

“We all need taxes to run a country, but get the taxes on the back end so that it doesn’t affect the competitiveness of your export, whether it be tourism or anything else manufacturing. By so doing, you will remain competitive, you will get more foreign exchange and you will get more employment. That’s my little philosophy,” he asserted.

The nine-month completion of the new luxury
Sandals La Source resort has been hailed for setting a benchmark in Grenada.

His comments came at an appreciation ceremony to toast Grenadian government and business officials, as well as Sandals staff and its regional and international partners, in recognition of their role in making the Sandals La Source resort a reality.

Leon Taylor, owner of the
original La Source property.

The massive project, which within a short nine months saw the previous 100-room property being converted into a top-of-the-line Sandals resort, with 225 rooms and suites, nine restaurants, fitness centre and spa, among other amenities, called for an unprecedented level of co-operation between various government departments, agencies and private sector businesses, some of whom are usually competitors.

Accordingly, the new Sandals La Source has been hailed for setting an impressive new benchmark for both Grenada and Sandals Resorts International (SRI).

“This property made us break the 12 000 employee threshold,” revealed CEO of SRI, Adam Stewart. “Sandals Resorts International now employs over 12 000 Caribbean nationals, which makes us the largest private sector employer in the region.”

Over 500 Grenadians have found employment at the property. This is in addition to the 1 600 workers on site during the resort’s construction phase.

And there are still more employment opportunities to be created, as SRI Chairman Gordon ‘Butch’ Stewart has revealed that the regional conglomerate intends to establish one of its call centres in Grenada, with construction to begin in another two months. (YA)